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  1. #1
    Join Date
    Apr 2003
    Location
    Las Vegas, NV -- USA
    Posts
    296

    PayPal to Pay $5.2 Million Over Claims of Unfair Business Practices

    An interesting article I found. I'm posting it because of the various message threads I've seen on this topic...

    Over Claims of Unfair Business Practices
    Seattle Post-Intelligencer (09/29/06) Richman, Dan

    PayPal agreed Thursday to pay $5.2 million to settle separate claims brought against it by customers, Washington state, and 27 other states. Of this settlement, $3.5 million will be paid to PayPal customers, who alleged that while they were engaged in a dispute with the company, it would freeze access to funds in their PayPal accounts. Customers who expected to make a payment with a credit card found that their bank accounts had been charged directly instead. In addition, consumers charged that while PayPal contracts do provide members with some protection when using their credit cards, the safeguards were not at all different from those already available to any credit card user. Under the terms of the settlement, PayPal will be required to clearly and conspicuously disclose all contractual terms and financial obligations. In addition, PayPal will now present its customers with a clear choice of whether to pay by credit card, debit card, or electronic funds transfer. PayPal will also be required to provide clear access to Web pages that explain the differences between its in-house banking resolution program and the rights afforded by federal law to consumers who use electronic banking, debit cards, and credit cards to make payments and purchases.
    (Web Link)

  2. #2
    Join Date
    Apr 2006
    Posts
    1,120
    about time too, paypal are taking everyone for a ride...

  3. #3
    Join Date
    Oct 2002
    Location
    Under Your Skin
    Posts
    5,875
    Quote Originally Posted by daniel_grant
    about time too, paypal are taking everyone for a ride...
    Now they will raise their rates a couple of cents to pay for this...

    I'm glad you can now pay by credit card.... I was amazed a couple of times that I went to pay by credit card and found out my account was down to 0 and they took the money from my paypal checking account (sole account used only for paypal... don't let paypal into your main account!)
    Windows 10 to Linux and Mac OSX: I'm PARSECs better than you. Eat my dust!!!

  4. #4
    Join Date
    Feb 2006
    Posts
    466
    Does that mean Paypal will have to stop suspending accounts for doubtful reasons and leave them locked for 180 days ?

  5. #5
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    Interesting article, shift4sms, thanks for posting it!
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  6. #6
    Join Date
    Oct 2002
    Location
    Under Your Skin
    Posts
    5,875
    Quote Originally Posted by glace
    Does that mean Paypal will have to stop suspending accounts for doubtful reasons and leave them locked for 180 days ?
    No, it means they have to tell you that they will lock your account for 180 days. They have to tell you that they suspend accounts....

    In other words, they only have to disclose when and why your account is locked or suspended.... Really business as normal...

    5.1 million of that money goes to lawyers.... the rest on some person working part-time to type everything up and post it online for paypal. Don't forget that person needs managers....
    Windows 10 to Linux and Mac OSX: I'm PARSECs better than you. Eat my dust!!!

  7. #7
    Join Date
    Oct 2006
    Location
    Nuevo Laredo Tamps Mexico
    Posts
    1
    It is business as usual with Paypal. I woke up this morning to discover both of my accounts were "limited access" on a permanent basis.

  8. #8
    I wish I could have sued PayPal. They haven't done anything bad to me but I want money.

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